Liz DeAmbrose, Coldwell Banker 813-956-6487 or homenet@gte.net

GLOOM AND DOOM REPORT

Marc Faber, editor of the Gloom and Doom Report lives in Thailand. Today on CNBC  he said that homes in the southern parts of this country were cheaper than in Thailand.  Further he stated that the housing market in the south of the United States is among the most attractive asset classes in the world, because while homebuilder stocks had rallied, property prices hadn’t moved much.  He was wrong on this point, housing prices have moved further down since January of this year. For the last four years each spring home prices in the Tampa area take a jump down. This is due to the normally larger number of people that move during this time of year. When you need to sell, you price your home a little lower than current market value. Then your neighbor prices below you. When the properties sell they become the new appraisal value in the area.

Most of the new home construction in New Tampa is in fill building. This is using lots in neighborhoods like Live Oaks that belonged to builders that went out of business or withdrew in 2007 thru 2010. Big new communities aren’t opening up in this area. Homes in well established neighborhoods are selling for the best prices.

This market is made for bargain hunters and investors. But remember markets are constantly changing and as areas totally build out  prices will rise. It’s never doom and gloom forever.

$25 Billion Dollar Deal

YES, $25 billion dollars in cash and deals coming from the banks to you. Forty nine states attorneys’ sued the banking industry. They hammered out of deal announced this week to compensate some homeowners and give debt relief to others.

The $25 billion will help relatively few homeowners who are presently in foreclosure. The agreement will help 750,000 people who lost their homes to foreclosure between 9/2008 and  12/2011. They will receive checks for $2,000.00 each. This is to compensate them for any error in their foreclosure procedure. These are all homeowners who stopped paying and were foreclosed on by their lenders.

Three hundred thousand homeowners will be able to refinance their mortgages at lower rates, but not reduce the principal amount of the mortgage.  There has been no agreements made to reduce the principal between the government and lenders. This probably will not happen.   The mortgages that are eligible for interest deduction are Fannie and Freddie Mac backed mortgages. To find out if your mortgage is  contact your lender.

If you would like to get New Tampa/Wesley Chapel sales reports or new inventory updates please send an email for HOMENET@GTE.NET  with your email address.

REAL ESTATE UPDATE February 3, 2012

This week new rules for HAMP came into effect. This is the federal governments loan modification program.  This program should help underwater homeowners remortgage their homes closer to today’s rate of 3.5%. This program changes the terms of the loan not the principal balance. So the interest rate can be lowered and the length of the mortgage can be extended. Example taking a 30 year mortgage and making it a 40 year mortgage. Either of these two or the two combined would bring down the monthly payment.  The homeowner can owe more on the home than the home is worth. Principal reduction will still be at the lenders discrection. Contact your current lender to get details.

CoreLogic and Case Schiller released housing numbers last week. In the month of December home prices fell across the country to end the year with a 4.7% annual decrease. Prices across the country fell 5 consecutive months. The five states with the largest peak to current declines including distressed transactions are Nevada -60%, Arizona -51.9%, Florida -50%, Michigan -43.7%, and California -43.5%.

December 2012 New Tampa Home Sales

ARBOR GREENE:  10 homes sold,   17927 Arbor Haven Drive had the highest price at $502,000 for 4062 square feet, it was on the market for 25 days.

COUNTRY WALK:  3 homes sold,  30434 Pecan Valley Loop highest price at $210,000 for 2623 square feet, 93 days to close.

CORY LAKE:  1 sale only, 18022 Maui Isle for $250,000, 2900 square feet.

CROSS CREEK:  4 sales, 18437 Eastwyck Drive sold for $286,500, 3029 square feet.

EASTON PARK:  6 sales all new homes, 10703 Breaking Rocks Drive sold for $324,990.00, 3436 square feet.

GRAND HAMPTONS:  10 sales, the best was at 8360 Old Town for $340,000, 3336 square feet.

HERITAGE ISLES:  4 sales, all short sales, 18105 Emerald Bay sold for $275,000, 3611 square feet.

HUNTERS GREEN:  6 sales, the best was 17825 Green Willow for $315,000, 2658 square feet.

LIVE OAK PRESERVE:  7 sales, highest sale on 9675 Orange Jasmine $292,930., 3210 square feet.  Live Oak is selling mostly new homes.

MEADOW POINTE:  always has the most sales in New Tampa, this month there were 20. The WORST was a town home located at 1339 Lyonshire Drive. It sold for $35,000 with 1191 square feet.

PEBBLE CREEK:  no sales

SEVEN OAKS:  11 sales, 27233 Laurel Chase Lane sold for $320,000, 3375 square feet.

RICHMOND PLACE:   2 bank owned condos

TAMPA PALMS:  8 sales, 16425 Burniston Drive/Whitehall sold for $660,000., 3849 square feet.

WEST MEADOWS:  5 sales, 8403 Pine Thrust Way sold for $349,000, 3803 square feet.

CRAZY LOW INTEREST RATES

YES, INTEREST RATES ARE CRAZY LOW, currently a 30 year fixed rate interest loan for well qualified buyers is 3.89%.  Well qualified means a credit score of at least 720. This is below the previous low of 3.91%. The average 15 year fixed mortgage is 3.16. Mortgage interest rates track the 10 year bond. Ten year bond yields are below 2%.  Many economists feel the federal government will print/buy bonds again this summer. This will push the yield down again and that in turn will push down interest rates.

BUYERS AND SELLERS AREN’T ON THE SAME PAGE

Buyers and sellers are at odds about home prices and where the market is going. Many analyst believe the market will begin t o stabilize this year where others believe it’s two years away.  Buyers are feeling that this is a good time to buy, rates are at there lowest in history and prices are roughly 50% off the top. The prices currently in our area have been rolled all the way back to 2001. Sellers sentiment is still falling and is at is lowest record ever. The prices a seller wants has to be adjusted to current market condition. If you are buying and selling within Florida it all equals out. You sell for less but the next property costs you less to buy. Currently 20% of homeowners are underwater and their homes should not be on the market. Buyers won’t pay you more just because you owe more.  If you need to move look into renting your home. The rental market is strong and many families have decided renting makes sense for them.

Need to sell or rent please give me a call.  Liz (cell)  956-6487  at Coldwell Banker

TAMPA HOME PRICES FALL

Case-Schiller reported today that Tampa’s home prices fell 6.7% year over year. Atlanta, San Francisco and Tampa posted the biggest monthly price declines. Prices in Atlanta, Las Vegas and Phoenix fell to there lowest levels since the housing crisis began four year ago.  Interest rates have hit a 60 year low at just under 4%.  We have reached the point in Tampa where it is cheaper to buy then rent. Foreclosures and short sales are selling for 20% less than non-distressed homes.

All areas are not created equal. Neighborhoods that are desirable and have little turn over have stabilized out for the time being. Areas where there was heavy construction during the boom years are the hardest hit. Some of those subdivisions in New Tampa are making a turn around. Live Oak has had the most sales in New Tampa for 4 months. Several builders have bought the existing vacant lots and are building on them at a record pace.  On the other hand County Walk  just south of 54 and next to Meadow Pointe has not had builders coming to it’s rescue. The economy will have to turn around more for builders to go further out. With Wiregrass Mall at hit, the hospital opening, Raymond James coming etc. it is only a matter of time before Country Walk to become popular.

THE LOST DECADE IN HOUSINGS

Not only has it been a lost decade on Wall Street but it’s been a lost decade on Main Street.  Housing prices have been rolled back to 2001. Even if you bought your home at a bargain price during this period it’s no bargain now. Homes within the area have fallen 9.2 percent from last October.  Fifty seven percent of homeowners in the Tampa area are underwater on their mortgages, nationally it’s only 29%. New Tampa is a micro market which has been impacted by large areas of development. A homeowner in Tampa Palms is effected by sales in Arbor Greene. If a home is significantly cheaper in Arbor Greene buyers will gravitate to that home even if the location is not as convenient. Forty eight percent of all the homes sold in October sold for a loss.

FORECLOSURES ARE HITTING THE MARKET AGAIN

Florida had a huge increase in foreclosures  with 28% followed by Pennsylvania and Indiana with 61%. Overall foreclosure notices were up 10% over  September and hit a 7 month high. Banks are moving past their problems of robo signing etc. and tackling the huge backlog of delinquent loans. Credit reporting services said just under 6% of mortgage holders were at least 60 days past due.

All real estate professionals agree the huge back log of foreclosures has to be cleared before housing can stabilize. This back log will take time in Florida. All foreclosures have to go through the already burdened court system.  The longer this takes the more people are forced into this situation due to divorce, job transfer, etc. In a normal market these life changing events would be less of a problem. But when housing continues to fall which it has in Tampa every year, a sellers equity soon disappears.

Many of the homes that are sold by the bank are being cleaned, painted and new flooring put into them. Banks are trying to get more money and faster sales for it’s inventory.  Want more information on bank inventory just email me and we will send you foreclosures when they hit the market.

Liz DeAmbrose, Coldwell Banker, homenet@gte.net, or 813-956-6487

Harp won’t help most of us

Wells Fargo came out this week and said what many think, HARP isn’t going to help most homeowners. The millions of vacant or foreclosed homes need to be sold.  Harp doesn’t help homeowners who are behind on their mortgages. You have to be current and if you jump through hoops they still won’t reduce the principal on the loan. They reduce your interest rates and roll the hefty refinance fees into your mortgage.

Time alone is going to solve the housing mess.  Florida foreclosures have to go through the court system and this takes a lot of time.  It can takes years for the bank to even get around to the foreclosure process.  Banks need to make the short sale process fast and avoid the court system all together.